Financial Daily from THE HINDU group of publications
Friday, Jan 06, 2006
Financial Daily from THE HINDU group of publications Friday, Jan 06, 2006 |
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Opinion
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Corporate Disputes Corporate - Courts/Legal Issues Note, what is in the air
THOSE who thought that the Ambani saga was over, need to think again. The two brothers may have carved out their own fiefdoms from the empire Dhirubhai left for them, but the business rivalry continues unabated. An anonymous note doing media rounds hints at more than pure commercial interest guiding the public sector NTPC to take Mr Mukesh Ambani's Reliance Industries Limited (RIL) to court over sale of gas. According to this note, RIL is prepared to honour its basic commitment to supplying gas to NTPC at the originally agreed price of $2.86 per million British thermal units (mbtu) against the current international price of $9. But RIL wants a modification in the unlimited liability clause in the event of interruption of gas supplies and wants this liability restricted to 175 per cent of the alternative fuel cost. The note also points out that a high-level meeting of the Power and Petroleum Secretaries and representatives of NTPC and RIL was convened in Delhi on December 19 to sort out the issue, but could not take place because of the death of the Power Minister. The next day, NTPC went to court with a petition against RIL, without waiting for a fresh date for the meeting. Against this background, the note alleges pressure on NTPC to force RIL to stick to the original commitment so that could become the basis for the agreement expected in future for the Anil Ambani-promoted mega power project in Uttar Pradesh which will use gas supplied by RIL. Any guesses where the note came from? *********
New Delhi Bureau
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